South Africa-based coal producer Forbes & Manhattan Coal Corp (Forbes Coal) announced that it has came to an agreement with the mining giant Rio Tinto to acquire Rio Tinto's entire shares in Riversdale Holdings.
Accordingly, Forbes Coal will have 74 percent shares of the Zululand Anthracite Colliery (ZAC) and the Riversdale Anthracite Colliery (RAC), an undeveloped anthracite resource. The company will pay a base payment of ZAR 440 million ($53.4 million) for the transaction. Forbes Coal will also pay an annual revenue share of 10 percent on incremental revenue above ZAR 850 million ($103.2 million) until 2025.
According to Forbes Coal's statement, the ZAC mine has produced an average 700,000 mt of coal per year over the last five years.